Donald BallWendell H. McCulloch,
California State University Long BeachPaul L. Frantz,
California State University Long BeachMichael Geringer,
California Polytechnic State UniversityMichael S. Minor,
University of Texas Pan American

The Rapid Change of Global Business

Multiple Choice Quiz

1

Which of the following will not improve a candidate's chances to obtain an overseas post?

A)

Making sure that you keep your interest in obtaining an overseas post to yourself.

B)

Studying international business.

C)

Meeting people in the home office who work with foreign subsidiaries.

D)

Making sure that your boss and the Human Resources Management department personnel are aware of your interest.

2

A global company is defined as an organization that attempts to have a worldwide presence in its market, to standardize operations worldwide in one or more of the firm's functional areas, and to integrate its operations worldwide. According to this definition, a global firm's management:

An organization that attempts to standardize and integrate operations worldwide in all functional areas.

B)

The same as a global company.

C)

An organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences.

D)

An organization that standardizes and integrates operations on a domestic basis.

5

One of the first multinational companies in existence in the late 1800's to own foreign production facilities, worldwide distribution networks, and market its products under global brands was:

A)

Eastman Kodak.

B)

Singer Sewing Machines.

C)

Ford Motor Company.

D)

Coca-Cola.

6

Which of the following is not a major kind of driver leading international firms to the globalization of their operations?

A)

Political.

B)

Market.

C)

Environmental.

D)

Technology.

7

The most common definition of globalization is that of:

A)

Political globalization - the international integration of political laws and customs.

B)

Geographical globalization - the international integration of countries in geographical proximity to one another.

C)

Cultural globalization - the international integration of people with similar cultural characteristics.

D)

Economic globalization - the international integration of goods, technology, labor, and capital.

8

Advances in computers and communications technology are permitting an increased flow of ideas and information across boarders. This enables:

A)

Manufacturing personnel to concentrate more on domestic production.

B)

Customers to learn about foreign goods.

C)

Sellers of products to travel to more locations worldwide in search of buyers.

D)

Advertisers to focus more on specific countries where demand is the greatest.

9

One of management's goals is utilizing economies of scale to reduce unit costs. Which of the following would not necessarily result in economics of scale being realized?

A)

Globalizing product lines to reduce development costs.

B)

Locating production in countries where the costs of the factors of production are lower.

C)

Locating production in countries where the labor force is the most highly educated.

D)

Globalizing product lines to reduce production and inventory costs.

10

The nation that was the largest acquirer of foreign companies in 1999 was:

A)

The United Kingdom.

B)

Japan.

C)

The United States.

D)

China.

11

In 1999, the United Nations Conference on Trade and Development estimated that there were over __________ companies with half a million foreign affiliates that accounted for 25% of global output.

A)

40,000

B)

60,000

C)

80,000

D)

100,000

12

The number 7 ranked nation according to GNP or total sales in 1998 was:

A)

France.

B)

Canada.

C)

Italy.

D)

China.

13

In 1999, _____________ had the greatest number of firms in the top ten listing for the automobile industry.

A)

France.

B)

Germany.

C)

Japan.

D)

The United States.

14

The country with the most companies on the 1999 Fortune Global 500 list is:

A)

Germany.

B)

Japan.

C)

The United Kingdom.

D)

The United States.

15

International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments. Which of the following is not one of the three kinds of environments?

A)

Domestic.

B)

Foreign.

C)

International.

D)

Local.

16

Uncontrollable forces that management has no direct control over include:

A)

Political.

B)

Capital.

C)

Raw materials.

D)

Production.

17

Controllable forces that management administers to adapt to changes in uncontrollable forces include:

A)

Financial.

B)

Legal.

C)

Technological.

D)

Personnel.

18

The forces in the foreign environment are the same as those in the domestic environment except that they occur in foreign nations. However, they operate differently for several reasons. Which of the following is not one of the reasons?

A)

Different force values.

B)

Changes are difficult to access.

C)

Physical and sociocultural forces are not important.

D)

The forces are interrelated.

19

Self-reference criterion is _____________________________ when judging behavioral actions of others in a new and different environment:

A)

The conscious reference to the manager's own cultural values.

B)

The unconscious reference to the manager's own cultural values.

C)

The conscious ignoring of the manager's own cultural values.

D)

The unconscious ignoring of the manager's own cultural values.

20

In international business, the international manager has ________ choices in what to do with a concept or technique employed in domestic operations.